What Is an FHA Loan?

An FHA loan is a government-backed mortgage insured by the Federal Housing Administration. Designed to make buying a home more accessible, FHA loans offer more flexible requirements than many conventional loans — making them a popular choice for first-time buyers and those with limited savings.

Why Choose an FHA Loan?

With an FHA loan, qualified borrowers may benefit from:

  • Low down payment – as little as 3.5% of the purchase price
  • Flexible credit requirements – easier to qualify than many conventional loans
  • Assistance with closing costs – sellers, builders, and lenders can contribute up to 6%
  • Assumable mortgages – take over an existing FHA loan from a seller
  • Refinance options – FHA loans aren’t just for new purchases
  • No prepayment penalties – pay off your loan early without extra fees
  • Gift funds allowed – down payment can come from family support

FHA Loan Limits and Requirements

Loan limits vary by county and property type, but FHA loans are available for many single-family and multi-family homes that will be used as your primary residence. To apply, you’ll typically need to provide:

  • Employment history
  • Credit score and bank statements
  • Recent tax returns and W-2s
  • Paystubs and social security number
  • Any divorce or support agreements (if applicable)

Special Option: FHA 203(k) Loan

The FHA also offers the 203(k) renovation loan, which allows you to finance both the purchase of a home and the cost of needed repairs or improvements in a single loan.

How Tim and Liz Can Help

As FHA-approved lenders, Tim and Liz Serratt make the process smooth and straightforward. They’ll walk you through the requirements, help you understand your options, and ensure you’re set up with the right loan for your situation.

Take the First Step Today

Homeownership could be closer than you think. If you’ve been held back by down payment or credit score worries, an FHA loan may be the solution.